SALE OF OWNER OCCUPIED TWO FAMILY HOUSE

[gk]

Hi,

My client purchased a 2 family home in 2018.  He occupied Unit #1 with his wife and kid.  Unit 2 was  used as a rental unit on Sch E. He sold the house in 2022. How should i take the home sale exclusion for primary home and how can i show the capital gain for the investment part. How do i allocate the amount? Pls advise

[Just-Lisa-Now-]

split it in half, half as sale of rental, half as sale of personal residence.

[gk]

THANK U SO MUCH....

[taxes96786]

Lisa...wouldn't that depend on whether the units were of equal sq ft?

[Just-Lisa-Now- · Accepted solution]

With the limited info, I guessed it was a duplex, but if this 2 family home isnt 2 equal dwellings, then yes, the % could be skewed.